Cloud & Data Center Convention 2023

Note: Construction cost is estimated at JPY 1.7M per KVA, equivalent to xx% increase form 2021 (1 USD = 140 JPY) based on the corporate forecast median value for 2023-2024 according to BoJ Survey Results.

INCREASING ASSET AGE IN JAPAN OBSOLESCENCE = OPPORTUNITY FOR INVESTMENT

Greater Osaka

Greater Tokyo

sq.m.

sq.m.

Forecast

Forecast

1.2 M

60.0%

1.2 M

60.0%

55.8%

55.1%

53.9% 52.6%

52.9%

51.7%

1.0 M

50.0%

1.0 M

50.0%

44.4% 46.1% 45.3%

43.2% 43.0%

0.8 M

40.0%

0.8 M

40.0%

32.4%

0.6 M

30.0%

0.6 M

30.0%

0.4 M

20.0%

0.4 M

20.0%

0.2 M

10.0%

0.2 M

10.0%

0.0 M

0.0%

0.0 M

0.0%

2020 2021

2022 2023 2024 2025

2020 2021

2022 2023 2024 2025

DC with deterioration

DC in good condition

Obsolescense Ratio

DC with deterioration

DC in good condition

Obsolescense Ratio

Est. Replacement Cost of deteriorated facilities: JPY 673 billion (US$4.8 billion)

Est. Replacement Cost of deteriorated facilities: JPY 107 billion (US$0.8 billion)

Note: Defined according to large capital investment required. For Data Center assets, Obsolescence ratio = data center over 20 years old / Total Stock (GFA)

22

Cushman & Wakefield

Source: Fuji Chimera Research Institute; Development Bank of Japan, C&W Research